Executive Summary:
This circular from the Reserve Bank of India (RBI) announces the launch of the Import Data Processing and Monitoring System (IDPMS) effective October 10, 2016, to enhance the ease of doing business and facilitate efficient data processing and monitoring of import transactions. All authorized dealer (AD) Category-I banks are directed to use IDPMS for reporting and monitoring import transactions. Banks were required to complete creation of ORM for all outstanding outward remittances for import payments on or before October 31, 2016.
Key Points / Main Content:
* **IDPMS Implementation:**
* IDPMS goes live on October 10, 2016, for reporting and monitoring import transactions by AD Category-I banks.
* Primary import transaction data from Customs/SEZ is available in IDPMS for AD banks for processing.
* **Bill of Entry (BoE) Modifications:**
* The Customs department has modified the BoE format to display the AD Code of the bank (effective April 1, 2016 for Customs and June 1, 2016 for SEZ).
* **Outward Remittance Message (ORM):**
* AD banks are required to create ORMs for outward remittances for import payments where prescribed import documents are not yet submitted.
* Creation of ORMs for all outstanding outward remittances for import payments needed to be completed by October 31, 2016.
* **BoE Settlement:**
* Banks download BoEs issued by EDI ports from the BOE Master in IDPMS based on the AD code declared by the importer.
* For non-EDI ports, AD banks upload the BoE data in IDPMS.
* AD banks enter BoE details for ORMs associated with advance payments for import transactions.
* When payment is made after BoE receipt, AD banks generate ORMs for import payments.
* Multiple ORMs can be settled against a single BoE and vice versa.
* **Extension and Write-Off:**
* AD Category-I banks can grant extensions for BoE submission and report it in IDPMS, including the extension date.
* AD Category-I banks can close BoE/ORM in IDPMS with a write-off up to 5% of invoice value due to operational reasons, if satisfied with importer's explanation.
* BoE can be closed for import transactions with write-offs due to quality issues, short shipment, or destruction of goods, subject to documentation, regardless of the amount.
* Extension and write-off guidelines facilitate closure in IDPMS, subject to existing guidelines and do not absolve the importer of remitting/receiving amounts if circumstances change.
* Cases not covered by existing guidelines may be referred to the RBI Regional Office.
* **Follow-up for Evidence of Import:**
* AD Category-I banks are required to follow up for submission of prescribed import documents.
Impact Analysis:
* **AD Category-I Banks:**
* Impact: Banks are responsible for reporting and monitoring import transactions through IDPMS, creating ORMs, settling BoEs, managing extensions and write-offs, and following up for import evidence. They need to adapt their IT systems to comply with IDPMS requirements.
* Action Required: Use IDPMS for reporting and monitoring import transactions, create ORMs, settle BoEs, manage extensions and write-offs, follow up for import evidence, and ensure IT systems are updated.
* **Importers:**
* Impact: Importers need to ensure that the AD code is correctly declared in the Bill of Entry. They may need to provide documentation for write-offs and must comply with existing guidelines for import transactions.
* Action Required: Ensure AD code is correctly declared on BoE. Provide necessary documentation as requested by AD banks.
* **Customs and SEZ Authorities:**
* Impact: Customs departments have modified the Bill of Entry format.
* Action Required: Continue providing primary import transaction data to AD banks through the IDPMS database.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's currency.
Mumbai, Maharashtra: The city where the Reserve Bank of India is located.
Import Data Processing and Monitoring System (IDPMS): A system developed to enhance ease of doing business and facilitate efficient data processing for payment of import transactions and effective monitoring thereof.
Authorised Dealer Category-I (AD Category-I) banks: Banks authorized by the Reserve Bank of India to deal in foreign exchange.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Current Account Transaction Rules, 2000: Rules pertaining to current account transactions under the Foreign Exchange Management Act.
Bill of Entry (BoE): A document filed with customs authorities by an importer to declare imported goods.
Master Direction No. 17/2015-16: A set of comprehensive directions issued by the Reserve Bank of India, which is being updated to reflect the changes introduced by this circular.
RESERVE BANK OF INDIA
Mumbai - 400 001
RBI/2016-17/78
A.P. (DIR Series) Circular No. 05 October 06, 2016
To
All Category - I Authorised Dealer Banks
Madam/Sir,
Import Data Processing and Monitoring System (IDPMS)
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to
A.P. (DIR Series) Circular No.65 dated April 28, 2016 read with Section 5 of
the Foreign Exchange Management Act 1999 (42 of 1999), Government of
India Notification No. G.S.R. 381(E) dated May 3, 2000 viz., Foreign
Exchange Management (Current Account Transaction) Rules, 2000 on import
of goods and A.P. (DIR Series) Circular No. 9 dated August 24, 2000 which
outlines the procedure, mode/manner of payment for imports and submission
of related returns.
2. In order to enhance ease of doing business and facilitate efficient data
processing for payment of import transactions and effective monitoring
thereof, Import Data Processing and Monitoring System (IDPMS) has been
developed in consultation with the Customs authorities and other
stakeholders. The details of IDPMS were advised to the AD Category-I banks
vide above mentioned A.P. (DIR Series) Circular No.65 dated April 28, 2016
and banks were requested to be ready with the required IT changes in their
system to generate/submit the data under IDPMS as per specified message
format and technical specification.
3. As announced in the fourth Bi-monthly Monetary Policy Statement
2016-17 dated October 4, 2016, all AD Category-I banks are advised that
IDPMS will go live with effect from October 10, 2016 and are directed to use
IDPMS for reporting and monitoring of the import transactions.4. Customs department has modified the Bill of Entry (BoE) format to
display the AD Code of bank with effect from April 1, 2016 and SEZ from June
1, 2016 respectively. Primary import transaction data (from Customs/SEZ)
with effect from the above mentioned dates will be made available to
respective AD banks in the IDPMS database for further processing. Starting
October 10, 2016 all transactions will flow to IDPMS on daily basis for AD
banks, to log all subsequent activities and monitor the import transactions.
5. The User Acceptance Test (UAT) of IDPMS was launched on August
19, 2016 and banks were requested to login and familiarise themselves. AD
banks were also advised to be ready with data related to all the outstanding
import remittances as per the message “outward remittances against Import”
to facilitate uploading of the same in IDPMS.
6. The detailed operational procedures are available at Help Menu on
EDPMS Portal under “Import process” tag. The operational
directions/guidelines are as below:
i. AD banks are required to create Outward Remittance Message (ORM)
for all such outward remittance/s for import payments on behalf of their
importer customer for which the prescribed documents for evidence of
import have not been submitted.
ii. Creation of ORM for all outstanding outward remittance/s for import
payments needs to be completed on or before October 31, 2016.
Settlement of ORM with BoE
iii. Based on the AD code declared by the importer, the banks shall
download the Bill of Entry (BoE) issued by EDI ports from “BOE
Master” in IDPMS. For non-EDI ports, AD bank of the importer shall
upload the BoE data in IDPMS as per message format “Manual BOE
reporting” on daily basis on receipt of BoE from the customer/Customs
office.
iv. AD banks will enter BoE details (BoE number, port code and date) for
ORM associated with the advance payments for import transactions as
per the message format “BOE settlement”.
v. In case of payment after receipt of BoE, the AD bank shall generate
ORM for import payments made by its importer customer as per the
message format “BOE settlement”.vi. Multiple ORMs can be settled against single BoE and also multiple BoE
can be settled against one ORM.
Extension and Write Off
vii. AD Category I banks shall give extension for submission of BoE
beyond the prescribed period in terms of the extant guidelines on the
matter, and the same will be reported in IDPMS as per the message
“Bill of Entry Extension” and the date up to which extension is granted
will be indicated in “Extension Date” column.
viii. AD Category I banks can consider closure of BoE/ORM in IDPMS that
involves write off to the extent of 5% of invoice value in cases where
the amount declared in BoE varies from the actual remittance due to
operational reasons and the AD bank is satisfied with the reason/s
submitted by the importer.
ix. AD Category I banks may close the BoE for such import transactions
where write off of import payable is on account of quality issues; short
shipment or destruction of goods by the port / Customs / health
authorities in terms of extant guidelines on the matter subject to
submission of satisfactory documentation by the importer irrespective
of the amount involved. AD Bank shall settle and close ORM/BoE with
appropriate “Adjustment Indicator” in IDPMS.
x. The above operational guidelines for extension and write off are meant
to facilitate closure of bills in IDPMS and will be subject to extant
guidelines on the matter and shall not absolve the importer from
remitting / receiving the amount in case of change in circumstances.
xi. Extension and write off cases not covered by the extant guidelines may
be referred to the concerned Regional Office of Reserve Bank of India
for necessary approvals.
Follow-up for Evidence of Import
xii. AD Category – I banks are required to follow up for submission of
prescribed documents for evidence of import in terms of extant
guidelines on the subject.
7. Authorised Dealers may bring the contents of this circular to the notice
of their constituents and customers concerned.8. Master Direction No. 17/2015-16 dated January 1, 2016 is being
updated to reflect the changes.
9. The directions contained in this circular have been issued under
Section 10(4) and 11(1) of the FEMA, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(A. K. Pandey)
Chief General Manager